Apple Slashes Prices on iPhone 4/4S by 15-25% in Brazil

Monday April 1, 2013 8:39 PM PDT by Eric Slivka

As noted by O Globo, Apple today made significant cuts to its pricing for the iPhone 4 and 4S in Brazil, lowering the price of the 8 GB iPhone 4 from R$ 1499 (US$741) to R$ 1099 (US$544) while dropping the 16 GB iPhone 4S from R$ 1999 (US$989) to R$ 1699 (US$840).

New iPhone 4/4S pricing in Brazil

Apple's standard sales arrangement in Brazil includes financing of 12 monthly payments, but customers willing to pay in full with cash can order by phone for a 10% discount, bringing pricing down even further to R$ 989 (US$489) and R$ 1529 (US$756). It appears to be unclear if there have been any changes to iPhone 5 pricing, as Apple does not sell the device through its online store in Brazil.

In the United States, Apple sells the 8 GB iPhone 4 unlocked and unsubsidized for $450 before taxes, making Brazilian pricing fairly competitive with Apple's U.S. pricing. The 16 GB iPhone 4S is priced at $549 unlocked in the U.S., meaning that Brazilians are still paying a relatively significant premium for that device even with the 15% price cut.

Old iPhone 4/4S pricing in Brazil

The report does not note the reason for the significant price cut, but it seems likely that Apple's partnership with Foxconn to bring iPhone and iPad production to Brazil in order to avoid extremely high import taxes may now be yielding benefits. Apple has, however, not yet reduced pricing on the iPad in Brazil.

Late last year, Apple began hiring for its first retail stores in Brazil, seeking to raise its profile in the world's fifth most populous country.

There are no free phones. Just try it. Go to the Apple store and ask for a free phone. They do not give it to you until after you sign a contract saying you will pay something like $2,000. It is pretty clear that loan payments are bundled with the air time.

Yeah keep believing those stories. Their warehouses are full of these phones because nobody wants to pay a price THAT high for a 2 and 3 years old phones.

The high price is almost entirely due to Brazilian tariffs / taxes (Brazilian electronics prices are some of the highest in the world). Even if the margins were 40%, they are now down to 15% (prices slashed by 25%). Apple always slashes the prices to sell off inventory before a new product comes out. Brazil, India, and China will get a new low cost phone.

There are no free phones. Just try it. Go to the Apple store and ask for a free phone. They do not give it to you until after you sign a contract saying you will pay something like $2,000. It is pretty clear that loan payments are bundled with the air time.

So then why is apple working on a lower cost option? Or why did they come out with the iPad mini. Competition from cheap android phones are fierce. And apple knows it. Android while younger already enjoys a larger worldwide market share. iPhones sell well in the US because of the contracts. They don't sell as well elsewhere.

When Apple announces this new lower cost iPhone then we can continue the discussion.

We're now talking about Apple dropping the price of the two-year old iPhone TO $544 in Brazil.

And you wonder why "Android" is "winning" in poor countries?

Anyway... congrats to Google for getting the highest number on the market share chart.

But market share based on ultra cheap hardware isn't exactly the trophy you think it is...

MacRumors attracts a broad audience
of both consumers and professionals interested in
the latest technologies and products. We also boast an active community focused on
purchasing decisions and technical aspects of the iPhone, iPod, iPad, and Mac platforms.